Suggested Contacts as seen in outlook are brought into Archive Manager before the policy criteria is met for the mailbox or the mail server.
Issue arises due to contacts that have been created because you have sent emails to those email addresses and they are not a part of your AD, you will notice the suggested contacts do not have any details associated with them besides the email address and also they do not have any createtimestamp which means AM will not know the age of the contact hence it will bring it in the moment it sees these contacts ignoring the policy applied.
Defect is been confirmed as ST100745
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